Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Craig Sherman Thistlethwaite (CRD # 2507050) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into unauthorized discretion.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Thistlethwaite.
Registration Background for Craig Sherman Thistlethwaite
Mr. Thistlethwaite first became registered in the securities industry in 1995. He was most recently registered with Perrysburg, OH based Morgan Stanley (CRD # 149777) from June 2009 to February 2023. His prior registrations include Citigroup Global Markets, Inc. (CRD # 7059) from December 2006 to June 2009, and McDonald Investments Inc. (CRD # 566) from January 2001 to December 2006.
FINRA’s Allegations Against Craig Sherman Thistlethwaite
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated July 26, 2024 (No. 2023077934901), Mr. Thistlethwaite consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2014 and April 2021, [Mr.] Thistlethwaite exercised discretionary authority when placing 546 trades in two related customers’ accounts”;
- “The customers had not provided prior written authorization for [Mr.] Thistlethwaite to exercise discretion”;
- “In addition, Morgan Stanley did not accept the accounts as discretionary”;
- “Furthermore, from at least November 2020 through April 2021, [Mr.] Thistlethwaite communicated with a firm customer concerning securities-related business through unapproved channels”; and
- By virtue of his actions, Mr. Thistlethwaite violated NASD Rule 2510(b) and FINRA Rule 3260(b) regarding discretionary accounts, FINRA Rule 2010 regarding standards of commercial honor and principles of trade, and FINRA Rule 4511 regarding preservation of books and records.
FINRA Suspends Craig Sherman Thistlethwaite from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s July 26, 2024 AWC also indicates that Mr. Thistlethwaite consented to the following sanction(s):
- a 60-day suspension from association with any FINRA member in all capacities; and
- a fine in the amount of $10,000.00.
Craig Sherman Thistlethwaite Has A Prior History of Securities Industry Customer Complaints
In addition to Mr. Thistlethwait being suspended by FINRA from the securities industry regarding various sales practice violations, FINRA BrokerCheck for Mr. Thistlethwaite reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to the following:
- On August 17, 2021, a customer-initiated arbitration was commenced against Mr. Thistlethwaite regarding alleged actions that occurred while he was associated with Morgan Stanley. The customer allegations included breach of fiduciary duty, negligence, and failure to supervise. The customer further alleged damages in the amount of $6,101,020.08. On December 1, 2022, the arbitration panel awarded the customer $11,500,000.00.
- On February 5, 2022, a customer-initiated arbitration was commenced against Mr. Thistlethwaite regarding alleged actions that occurred while he was associated with Morgan Stanley. The customers’ allegations included unsuitability. The customer did not specify the amount of damages. On December 29, 2022, the arbitration panel awarded the customer $4,200,000.00.
Have You Lost Money with Craig Sherman Thistlethwaite?
If you or someone you know has or had a brokerage account with Mr. Craig Sherman Thistlethwaite and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
